COVID-19 Update for individuals - FCA proposes extension to consumer credit support

The FCA have proposed an extension to consumer credit support which I have previously covered here.

Under the new proposals, customers who are yet to request a payment freeze or an arranged interest-free overdraft of up to £500 will have until the 31 October to do so. For those who have already taken up support and are still experiencing temporary payment difficulties due to the Pandemic, lenders would continue to offer support with options including a further payment deferral or reducing payments to an amount the customer can afford for a further three months.

Tim Davison, Chartered Financial Planner for Shaw Gibbs comments

“Just because you may be able to defer or reduce payments doesn’t mean this is a good thing to do if you don’t need to. The first step is to speak with your bank/lender if you have concerns, do not stop your payments until you have an agreement with them”